Egypt’s New Administrative Capital is steadily gaining political momentum through a growing number of official events that reinforce its standing both officially and publicly, although residential occupancy remains limited.
According to Khaled Abbas, chairman and CEO of the Administrative Capital for Urban Development (ACUD), more than 30,000 people now live in the city, with the number of residents increasing daily. Speaking on television last month, Abbas said the population is expected to reach between 50,000 and 60,000 by the end of the year, based on applications for utility meter installations received by the company.
The project dates back to March 2015, when it was launched to ease pressure on Cairo by building a new city covering about 700 square kilometers (roughly 170,000 feddans) in three phases. The first phase spans 168 square kilometers (about 40,000 feddans), nearly half the size of Cairo, which covers about 90,000 feddans.
The capital was originally scheduled to become operational in 2020, but the COVID-19 pandemic and the geopolitical tensions that followed delayed its official launch until 2024. Ministries then began relocating to the Government District, followed by parliament and other state institutions.
Despite major investments in roads and transportation networks, residential occupancy remains limited compared with the government’s presence, even as authorities continue to hold high-profile events aimed at enhancing the capital’s stature. Most recently, President Abdel Fattah al-Sisi inaugurated the Strategic Command Headquarters, which official statements said is modeled on the world’s most advanced command-and-control centers.
Ahmed Abdel Fattah, head of Partner Business Development at Bold Routes Egypt, told Asharq Al-Awsat that the occupancy rate is “normal despite being limited,” noting that residential populations in new cities typically grow gradually as services expand and more activities are held.
“Years ago, people considered cities such as New Cairo and 6th of October City too far away,” he said. “Today, properties are marketed according to their proximity to the American University in Cairo’s Fifth Settlement, which has effectively become the new downtown.”
Abbas defended the occupancy figures, saying they are “not low.” He noted that the first phase alone is four times the size of either Sheikh Zayed City or El Shorouk City. “The capital is not just a handful of buildings in the middle of the desert, as some imagine,” he stated, adding that infrastructure for the first phase has been completed and about 70 percent of the city’s land has been sold to real estate developers.
Egypt sees the new capital as “a pivotal step” toward reorganizing state institutions within a modern urban environment built on advanced infrastructure and technology, according to official statements.
The city now hosts cabinet meetings, government press conferences, official meetings with senior officials, and major conferences. It recently opened a dedicated “Fan Zone” for World Cup broadcasts and has hosted several official conferences.
To improve access, Egypt recently began operating the East Nile Monorail, linking Cairo with the new capital.
Abdel Fattah said demand for residential units remains lower than demand for comparable units in New Cairo, though interest is increasing. He noted that many projects in the capital are still in the planning and construction stages, with many buyers reserving units on installment plans for future residence.
“The average price per square meter for apartments is about EGP50,000 ($1 equals about EGP50), rising to EGP85,000 for villas,” he said, adding that prices remain lower than in New Cairo because services and projects are not yet fully completed. He described the capital as “the future of housing in Egypt’s real estate market” and predicted demand would continue to grow.
The first phase is designed to accommodate about 500,000 residents. Former senator and strategic analyst Abdel Monem Said, however, expects the population to reach 1 million by 2030. He told Asharq Al-Awsat that the official momentum generated by recent inaugurations and the relocation of ministries and state institutions has strengthened the capital’s profile, while major events and conferences have increased its public appeal.
He continued that the current occupancy level is “natural, especially for a newly built city,” and predicted that both its population and its official and political role would expand gradually over time, following the experience of other countries that have established new capitals.
